12/17/2019
State Auditor Nicole Galloway today released an audit of the City of Sturgeon, located in Boone County. The audit was initiated by a citizen petition signed by residents of Sturgeon, who asked the Auditor's Office to conduct an independent review of the city's financial practices. The report, which highlighted concerns in several areas, gave a rating of fair and made recommendations to the city to address those concerns.
"Audits can make recommendations to help government officials take steps to better serve their constituents more effectively and efficiently," Auditor Galloway said. "I encourage the Sturgeon Board of Aldermen to use this audit as a means to improve their financial and other practices."
For more than 50 years, the city of Sturgeon has maintained a perpetual care cemetery fund for Mt. Horeb Cemetery, with the interest from the fund to be used for its preservation, care, upkeep and adornment. The audit found the city improperly transferred two certificates of deposit from the cemetery fund to the general revenue fund, dropping the cemetery fund balance from $177,000 at the end of fiscal year 2018 to $95,000 at the end of fiscal year 2019.
City officials also improperly spent from the principal of the cemetery fund and commingled cemetery fund assets with other city funds. The audit recommended that city officials ensure the cemetery fund is reimbursed for money inappropriately deposited and credited to the general revenue fund, that only interest income is disbursed from the fund, and that cemetery fund assets are kept separate from other funds.
The audit also found that the city's budget, financial reporting and accounting records are in need of improvement, including an incomplete city budget, inaccurate accounting records, and inadequate financial statements submitted to the Auditor's Office. Other accounting controls and procedures also need improvement, the audit said, and the city needs to strengthen its compliance with the Sunshine Law.
A complete copy of the audit can be found here.
